CDFM Working Capital Fund Management

Question 1

What is the primary purpose of a Department of Defense Working Capital Fund (WCF)?

Accepted Answer

To provide a revolving source of financing for goods and services provided to customers

Answer

To fund military pay and allowances directly

Answer

To accumulate funds for major weapon system acquisitions

Answer

To finance congressional earmarks for defense programs

Question 2

Which DoD instruction primarily governs Working Capital Fund financial management policies?

Accepted Answer

DoDI 7000.14-R (DoD Financial Management Regulation)

Answer

DoDI 5000.02 (Operation of the Adaptive Acquisition Framework)

Answer

DoDI 1400.25 (DoD Civilian Personnel Management System)

Answer

DoDI 3000.06 (Combat Support Agencies)

Question 3

What is a 'stabilized rate' in the context of DoD Working Capital Funds?

Accepted Answer

A fixed price charged to customers for an entire fiscal year to provide budget stability

Answer

An interest rate set by the Federal Reserve for defense borrowing

Answer

A congressionally mandated ceiling on WCF operating costs

Answer

A rate used to calculate depreciation on WCF capital assets

Question 4

Which of the following is a major business area of the Defense-Wide Working Capital Fund?

Accepted Answer

Defense Finance and Accounting Service (DFAS)

Answer

Army Corps of Engineers

Answer

National Guard Bureau

Answer

Joint Chiefs of Staff Directorate

Question 5

How are WCF operating results that generate a 'net operating loss' typically addressed?

Accepted Answer

They are recovered through rate adjustments in future fiscal years

Answer

They are written off as uncollectible at year-end

Answer

They are covered by a direct supplemental appropriation from Congress

Answer

They require immediate reprogramming from the Military Personnel appropriation

Question 6

Under DoD WCF policy, what does the term 'cash balance' requirement mean for a business area?

Accepted Answer

The fund must maintain sufficient cash to meet current operating needs without a Treasury loan

Answer

The business area must maintain zero cash at year-end

Answer

Cash on hand must equal three months of operating expenses

Answer

All cash must be deposited with the Federal Reserve within 24 hours

Question 7

Which of the following WCF business areas provides depot-level maintenance and repair of military equipment?

Accepted Answer

Depot Maintenance Activity Group

Answer

Defense Commissary Agency

Answer

Defense Logistics Agency Distribution

Answer

Defense Information Systems Agency